EUR/GBP breaks Flag Formation!

on Aug 28, 2014

For today’s article we have chosen to present you the EUR/GBP currency pair. First of all we would like to point out that we have chosen the cross because the main trend on a daily basis is very well positioned and we see signs for further trend continuation. We can clearly see the flag formation being created in the last couple of weeks and this is a trend continuation price structure.

Today there is a break of the lower flag boundary and we expect declines to continue towards a major weekly support which the price is very likely to be targeting from the beginning of the trend – in other words the levels between 0.7800/0.7750.

Even if the quotes rebound and start to climb again we would not expect a trend reversal as there are no signs for it on the daily chart. However, in case the price breaks 0.8030 it would indicate a stronger bullish presence which could push the quotes towards 0.8160. 

Report by (Zhivko Yordanov) 

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